In a bid to enable Ugandan business operators to have easier and more affordable access to credit, Stanbic Bank Uganda has reduced its USD Prime Lending Rate (PLR) from 13.5% to 13.0% per annum.
According to a statement from the bank, the new rate will take effect on March 1, 2025, and will apply to both new and existing loans.
The move aims to relax borrowing costs for customers, which in turn will boost investments in the country, leading to economic development.
Stanbic Bank contends that the reduction in the USD Lending Rate is expected to benefit businesses and individuals seeking USD-denominated loans, providing them with more affordable financing options.
Comparison with Other Banks
Compared to other banks in Uganda, Stanbic Bank’s new USD lending rate remains competitive. For instance, Absa Bank Uganda currently offers USD-denominated loans at an average lending rate of 13.8%, while Standard Chartered Bank Uganda maintains a rate of 14.0%. Equity Bank Uganda, on the other hand, has its USD lending rate at approximately 13.7%.